DBRS Morningstar Assigns Credit Rating of A (high) With a Stable Trend to Hydro One Inc.’s $100 Million Medium-Term Notes Reopening

DBRS Limited (DBRS Morningstar) assigned a credit rating of A (high) with a Stable trend to Hydro One Inc.’s (HOI or the Company) $100 million reopening of its 4.85% Unsecured Medium-Term Notes (Series 58) offering due 2054 (the Notes). The credit rating assigned to the Notes is based on the credit ratings of other already-outstanding series of Senior Unsecured Debentures.

The Notes will be direct, unsecured obligations of HOI, ranking pari passu with all other unsecured and unsubordinated indebtedness of the Company. HOI intends to allocate net proceeds from the issuance to finance and/or refinance, in whole or in part, new and/or existing Eligible Projects (as defined pursuant to the Company’s Sustainable Financing Framework) that are Green Projects (as described in the Company's Sustainable Financing Framework). Prior to such allocation, net proceeds may be initially used, in part or in full, for repayment of indebtedness or investments in bank deposits or other cash equivalents.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/416784/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings (July 4, 2023).

Notes:
All figures are in Canadian dollars unless otherwise noted.

DBRS Morningstar applied the following principal methodology:
-- Global Methodology for Rating Companies in the Regulated Electric, Natural Gas, and Water Utilities Industry (September 27, 2023; https://www.dbrsmorningstar.com/research/421106/global-methodology-for-rating-companies-in-the-regulated-electric-natural-gas-and-water-utilities-industry).

The credit rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

A description of how DBRS Morningstar analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/397223.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar trends and credit ratings are under regular surveillance.

Information regarding DBRS Morningstar credit ratings, including definitions, policies, and methodologies, is available on www.dbrsmorningstar.com or contact us at [email protected].

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577